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CANADA-CRUDE-Heavy discount narrows as monthly trading cycle begins

Published 2020-06-01, 03:49 p/m
© Reuters.
BAC
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June 1 (Reuters) - Canadian heavy crude's discount narrowed versus the U.S. benchmark West Texas Intermediate (WTI) on Monday, the first day of the monthly trading cycle.

* Western Canada Select (WCS) heavy blend crude for July delivery in Hardisty, Alberta, traded at $6.55 per barrel below WTI, according to NE2 Canada Inc, narrower than Friday's settle of $7.10 under.

* Analysts at Tudor, Pickering, Holt & Co last week said steam-driven oil sands production in April fell to 1,345 mbpd in April, down 167 mbpd from March and the lowest level since May 2017.

* A rebound in U.S. refining faces headwinds from a slow economic restart domestically and from the spread of COVID-19 in Latin America, where a majority of U.S. gasoline and diesel exports flow, analysts at Bank of America Merrill Lynch (NYSE:BAC) said.

* Global oil prices rose on reports that OPEC and Russia were close to a deal on extending output cuts, although rising U.S.-China tensions weighed on sentiment O/R

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